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is it legal to sell over advertised price? private residential sale

Discussion in 'Legal Issues' started by Lily Beach, 24th Jul, 2016.

  1. Lily Beach

    Lily Beach Member

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    Hi all, I am selling in regional NSW and not using an agent. This is the third property I will have sold privately. In the past I have advertised as "offers over $xxxK" and have done well. This time though I have listed the property at a price and its advertised on the two main realestate sales websites as well as the forsalebyowner site.

    Here's the thing: - I had two offers on the same day for the listing price. Neither were made on the sale contract but i believe them to be genuine. There are two other very keen parties who have stated they'll be making offers in the next few days. I have let all parties know that two offers for the listing price have been submitted but not accepted.

    My questions then are: -

    1) Can I continue to receive offers and sell above the listed price without breaching consumer law (misleading advertising etc) resulting in a possible claim against me from a disgruntled buyer?

    I understand that its not SOLD until an offer is agreed upon, Form 66w signed and a deposit paid.

    2) Given the active interest and that it is likely that I will be receiving offers now above the listed price, should I change the listing price on the on the realestate sale websites? eg "POA"? or "Offers over $xxxK"? or if i do that, will I provoke the current buyers who are submitting offers?

    3) If a Form 66w is signed by the buyer at the time of making the offer, am I correct in believe that this does NOT override other possible buyer conditions that they may include in the contract such as "subject to finance / pest and building inspection?"

    Comments on any and/or all of these questions welcome!
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    1. Probably. Price is only one factor a seller would consider..
    a property is sold when the offer is accepted. But a sale may not end up with a settlement.
    s66w is not essential

    2. up to you

    3. a s66w is just a waiving of the cooling off period.
     
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  3. Lily Beach

    Lily Beach Member

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    Hi Terryw and thank you. Sorry about my thick-headedness, but does your 'probably' mean that I am definitely legally able to continue to accept offers and exchange contracts for a higher price than that advertised? I understand that there are also conditions etc that a buyer may include in the contract and that a contract does not guarantee a settlement, but I am working with the scenario of exchange and settlement completing for a higher-than-advertised price.
     
  4. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Nope, my 'probably' means that it is unlikely someone would sue you for false and misleading advertising.
     
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  5. John Bone

    John Bone Well-Known Member

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    The law of contract is a state law but all states agree on one point and that is an advertisement stating a price is not an offer. It is an invitation to make an offer.
    For a contract to be legally binding there must be an offer and an acceptance. There is no obligation on the part of the advertiser to accept the price advertised.
     
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  6. Lily Beach

    Lily Beach Member

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  7. Lily Beach

    Lily Beach Member

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    John, thank you so much. That is very clear and very good news! Thank you!
     
  8. thatbum

    thatbum Well-Known Member

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    Its not that clear because its not quite the right issue. The issue is whether its 'bait advertising' and therefore a type of misleading and deceptive conduct.

    Look up those issues if you're worried, but as Terry mentioned, its probably not an issue. I say 'probably' not an issue, and not 'definitely' not an issue, as you somehow interpreted earlier.
     
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  9. JDM

    JDM Well-Known Member

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    It's not bait advertising if you would have genuinely sold the property at the advertised price so you should be fine depending on the variance between the advertised price and the sale price.
     
  10. Xenia

    Xenia Adelaide Property Manager Business Member

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    yes sell as high as you can, that's what it's about